With the ASX 200 largely struggling in 2026, there are plenty of quality companies on discount right now. 

Negative market sentiment and various headwinds like inflation and interest rate rises have pushed many investors into a defensive mindset. 

However there are also value opportunities in today’s market.

While broker targets should always be complimentary to individual research, they can provide a ballpark of where an ASX 200 stock price may go in the near future. 

Here’s three of the most undervalued ASX 200 companies now according to experts, along with how much a prospective investor could potentially profit over the next 12 months. 

Ora Banda Mining Ltd (ASX: OBM)

Ora Banda Mining engages in the development and exploration of gold.

Like many ASX gold shares, it enjoyed big gains in 2025. 

However since the start of 2026, it has tumbled almost 14%. 

Brokers now view this as a buy low opportunity for the ASX 200 stock. 

Canaccord Genuity recently reiterated its buy rating with a $2.25 target. 

From the current share price of $1.33, this indicates an upside potential of 69%. 

This means a $10,000 investment could rise to almost $17,000 in the next 12 months should this ASX 200 company reach its potential. 

Guzman Y Gomez Ltd (ASX: GYG)

The popular Mexican fast casual chain has been heavily covered this year as its share price has fallen significantly. 

For the year to date, this ASX 200 stock is down 12%. 

However, it has recently started to rebound after the company announced it was exiting the US market.

Investors largely saw this as a positive, as it has soared almost 20% since the news. 

Brokers also quickly began re-evaluating the company following this announcement. 

At the time of writing, the ASX 200 stock is trading at just under $19 per share. 

Bell Potter has increased its price target to $24.50, while Ord Minnett is even more optimistic, placing a $31.00 price target on Guzman Y Gomez shares. 

These targets indicate an upside potential of 29% to 63% upside. 

This would send a $10,000 investment somewhere into the range of $12,900 to $16,000 in the next 12 months. 

Flight Centre Travel Group Ltd (ASX: FLT)

Travel shares have also been hit hard this year due to global conflict and soaring oil prices. 

Flight Centre shares have subsequently fallen 26% year to date. 

However, it is also being tipped to recover in the near future. 

Macquarie has an outperform rating on Flight Centre shares with a price target of $17.95. 

From the current share price of $11.12, this indicates an upside potential of 61%. 

If the share price reaches this target, a $10,000 investment would reach over $16,000 by next June. 

The post How much could investors profit off these undervalued ASX 200 shares with a $10,000 investment? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares I’d buy and 1 I’d sell this month
• Buying ASX 200 gold stocks? Here’s how Evolution Mining, Newmont and Northern Star shares stacked up in May
• 4 ASX 200 shares rated a strong buy and with upsides of up to 51%
• 2 ASX shares highly recommended to buy: Experts
• Why Guzman y Gomez shares could shoot 30% higher after exiting the US market

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you in the market for some new additions to your income portfolio?

If you are, it could be worth considering the three ASX dividend shares in this article.

Here’s what you need to know about them:

Amcor plc (ASX: AMC)

The first ASX dividend share to look at is Amcor. It is a global packaging business that serves customers across food, beverage, healthcare, personal care, and other consumer categories.

Its products may not grab headlines, but they sit inside supply chains that consumers interact with every day. From medicine packaging to food containers and household products, Amcor plays a quiet but important role in getting essential goods onto shelves safely and efficiently.

That gives the business a defensive quality. Demand can still move with economic conditions and customer volumes, but packaging tied to everyday products is less exposed than many discretionary categories.

Amcor shares are forecast to provide dividend yields around 7% in both FY 2026 and FY 2027.

Telstra Group Ltd (ASX: TLS)

Another ASX dividend share that could be worth a look in June is Telstra.

Its position in Australian telecommunications gives Telstra a strong base for income investors. Its mobile network remains a major competitive advantage, particularly as households and businesses continue using more data.

Connectivity has become essential infrastructure. People may cut back on travel, entertainment, or big-ticket purchases when budgets are tight, but phone and internet services are much harder to live without.

That defensive demand is a key reason Telstra remains popular with dividend investors. The company also has a clearer structure than it did in the past, with management focused on mobile, network quality, enterprise services, and cost control.

Telstra shares are forecast to offer dividend yields around 4.2% this year and next.

Woolworths Group Ltd (ASX: WOW)

A third ASX dividend share for income investors to consider is Woolworths.

It is of course one of Australia’s most important consumer businesses. Its supermarkets are used by millions of shoppers each week, giving the company a central role in household spending.

The grocery sector is not without challenges. Competition can be intense, costs are rising, and regulatory scrutiny remains a risk.

Even so, Woolworths has advantages that are difficult to replicate. Its store network, supply chain, digital capabilities, loyalty program, and brand recognition give it a strong position in a market where scale matters. This makes Woolworths a useful defensive income option.

Woolworths shares are expected to offer dividend yields of 2.8% and 3.2% in FY 2026 and FY 2027, respectively.

The post Why Telstra and these defensive ASX dividend shares could be top buys appeared first on The Motley Fool Australia.

More reading

• 3 ASX defensive stocks to buy while sharemarkets are volatile
• Which defensive shares are outperforming the ASX 200
• TPG Telecom just raised its dividend. Here’s what that means for income investors
• 3 strong ASX dividend shares for retirees to buy
• Australia’s minimum wage just rose 4.75%. Here is what it means for ASX consumer stocks

Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc, Telstra Group, and Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While much of the ASX 200 sunk on Thursday, there were a few outliers hitting new 52-week highs. 

Amongst those shares, notable names included: 

• Ampol Ltd (ASX: ALD) rose 4%
• Aurizon Holdings Ltd (ASX: AZJ) hit a multi-year high
• New Hope Corporation Ltd (ASX: NHC) climbed 2%. 

There were various catalysts for the continued success of these ASX shares. Here’s what investors were reacting to and what experts are saying moving forward. 

Ampol hits new 52-week high thanks to billion dollar deal 

It’s been a great week for Ampol shareholders this week, as Australia’s largest listed petroleum refiner and distributor has risen roughly 8% in the last two days. 

Investors have been gobbling up the company’s shares after it announced that the Australian Competition and Consumer Commission (ACCC) has approved Ampol’s acquisition of fuel and convenience retailer EG Australia.

The company said the approval is conditional on Ampol’s divestment of 41 sites. 

Ampol said it has entered into a binding agreement to sell the 41 sites to Metro Petroleum.

Citing its strong balance sheet, Ampol said it will cash settle the scrip component of the purchase price. The seller of EG Australia will receive a net cash consideration of approximately $1.115 billion.

Its share price is now up 42% over the last 12 months. 

Much of this has come on the back of conflict in the Middle East and concerns about global oil supply earlier this year.

However it now appears the ASX stock is approaching full valuation. 

9 analyst forecasts via TradingView have a one year average price target of $37.89, which is just 4% higher than current levels. 

Aurizon hits multi-year high

Aurizon is Australia’s largest rail freight operator hauling bulk commodities, largely coal, as well as iron ore and agricultural products.

Its share price climbed another 1% yesterday, taking it to new multi-year highs. 

Aurizon shares have now climbed over 20% year to date.

This has largely come on the back of positive earnings results and a subsequent dividend boost. 

Despite this, experts are largely looking at the company as a hold after hitting fresh 52-week highs. 

The average price target sits roughly 9% below current levels. 

New hope keeps rising

New Hope is an Australian thermal coal miner.

Like many ASX energy shares, it has enjoyed big returns in 2026. 

For the to date, its share price has climbed an impressive 52%. 

Yesterday, it hit fresh 52-week highs of $6.17 per share. 

However, it also appears to have climbed past fair value. 

Bell Potter recently placed a hold rating and $5.00 price target on its shares.

This indicates a downside of 19%. 

The post Can these ASX shares hitting 52-week highs keep rising? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Acrow, Ampol, Medallion Metals, and Northern Star shares are racing higher
• Ampol shares jump as $1.1 billion deal clears a major hurdle
• Why is everyone talking about Megaport, Ampol and Northern Star shares on Wednesday?
• Buy, hold, sell: Goodman, Megaport, and New Hope shares

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When investors start thinking about ASX dividend stocks that bring in a passive income, they usually go straight to classic defensive stocks or the major banks. But BHP Group Ltd (ASX: BHP) shares are another popular choice.

BHP is widely considered a premier blue-chip ASX 200 stock, with a market capitalisation of $319 billion and a strong operational history. At the time of writing, BHP is the largest stock on the Australian sharemarket.

The miner is primarily exposed to iron ore, copper, and other key commodities.

BHP is a cyclical, rather than a defensive stock. While cyclical stocks are closely tied to the broad economic cycle, they usually outperform during periods of economic recovery. And this is good news for income-focused investors.

The low-cost miner has a long history of regular dividend payments, dating back to around 2006. And its commodity exposure is diversified, too. This means it is able to maintain its dividend payouts even when commodity prices fluctuate.

But how much passive income could a $5,000 investment actually generate? 

Let’s investigate.

How many BHP shares would you get for $5,000?

At the time of writing, BHP shares are changing hands for $62.61 each.

That means your $5,000 investment would buy around 79 shares in the ASX mining giant.

What does BHP pay its shareholders?

BHP traditionally pays two fully-franked dividends to shareholders each year, in March and September. 

The miner most recently paid its shareholders an interim dividend of $1.0385 per share in March, fully franked. This translates to a dividend yield of around 3.3% at the time of writing.

Based on the latest consensus forecasts, BHP is expected to pay a fully-franked dividend of $1.91 per share in FY26 and $1.80 per share in FY27. 

Based on the current share price, that translates to a forward dividend yield of around 3% for FY26 and 2.9% for FY27.

It’s not the highest dividend yield, but it represents the company’s stability and consistency.

So, what’s the estimated passive income for FY26 and FY27?

Using the estimated payout figures above, we can calculate roughly how much income you can expect from a $5,000 investment.

If the mining giant were to pay the expected $1.91 per share in FY26, then your 79 BHP shares would generate a total of $150.89.

Assuming the $1.85 dividend forecast for FY27 also comes to fruition, your 79 shares would generate $146.15 in passive income for the year.

The post If I invest $5,000 in BHP shares, how much passive income will I receive in 2026 and 2027? appeared first on The Motley Fool Australia.

More reading

• How much super do you actually need to retire in Australia? The answer might surprise you
• 7 ASX shares attracting upgraded ratings this week
• Buy, hold, sell: Tabcorp, 4DMedical, BHP shares
• Why is the BHP share price sinking today?
• 3 top ASX shares at 52-week highs I’d still buy

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a difficult session and sank into the red.  The benchmark index fell 1.1% to 8,686.1 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to rebound on Friday following a positive night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 32 points or 0.35% higher this morning. On Wall Street, the Dow Jones was up 1.7% and the S&P 500 rose 0.4%, but the Nasdaq edged 0.1% lower.

Oil prices tumble

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 3% to US$93.12 a barrel and the Brent crude oil price is down 2.6% to US$95.25 a barrel. Traders were selling oil amid reports that US President Donald Trump is reluctant to resume a full-scale war with Iran despite recent clashes.

IperionX shares named as a buy

IperionX Ltd (ASX: IPX) shares are in the buy zone according to analysts at Bell Potter. This morning, the broker has retained its speculative buy rating and $8.25 price target on the titanium production technologies company’s shares. It said: “IPX has the potential to disrupt the incumbent titanium supply chain through materially lowering production costs and manufacturing waste. The company will incrementally expand capacity and progress commercial relationships with aerospace, automotive, luxury goods and government end users. IPX will benefit from increased defence sector spending and with its focus on domestic US manufacturing.”

Gold price rises

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a good finish to the week after the gold price rose overnight. According to CNBC, the gold futures price is up 0.9% to US$4,506.9 an ounce. The precious metal was given a boost from a weaker US dollar and softening bond yields.

Megaport shares to return

Megaport Ltd (ASX: MP1) shares will be worth watching on Friday when the network solutions company returns to trade. Megaport is undertaking a capital raising after announcing four new artificial intelligence (AI) infrastructure contracts with a combined total contract value of approximately $458.9 million. Megaport’s CEO, Michael Reid, commented: “AI inference is becoming a global infrastructure challenge, not simply a GPU problem. As AI adoption accelerates, organisations need seamless access to GPUs, CPUs, storage, and the connectivity that powers them. Megaport is built to deliver it all.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

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• Up 148% since April, should I still buy Megaport shares today?
• Why IperionX, Northern Star, Opthea, and Superloop shares are tumbling today
• How high does Macquarie think Megaport shares will go?

Motley Fool contributor James Mickleboro has positions in Megaport and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX small-cap EBR Systems Inc (ASX: EBR) is making headlines this week. 

Yesterday, the company released an announcement that it aims to raise A$150.0m via a fully underwritten capital raising. 

According to the release, the proceeds from the Capital Raising are intended to be used to support sales and marketing expansion, manufacturing scale up, R&D and clinical, working capital and the costs of the offer.

The offer price per New CDI (Offer Price) under the Capital Raising is 38 cents. This represents a 19.1% discount to the last closing price of EBR on June 3 which was 47 cents per share. 

EBR company overview

EBR is a clinical stage company that has developed its patented Wireless Stimulation Endocardially (WiSE) technology. The technology is for the treatment of cardiac rhythm disease and to eliminate the need for cardiac pacing leads when delivering cardiac resynchronisation therapy.

It has been hotly covered over the last few months as it has repeatedly received positive outlooks from brokers. 

However, this is yet to translate to realised capital gains. Its share price has fallen almost 50% year to date. 

What does this mean for investors?

For investors, this capital raise is a significant dilution event for this ASX small-cap. 

EBR is issuing a large number of new shares at a heavily discounted price. This means existing shareholders who do not participate in the entitlement offer will see their ownership percentage reduced. 

The raise price of 38 cents per share may also put short-term pressure on the share price as the market adjusts to the new valuation.

However, the positive side is that EBR has secured more capital than expected. Management believes this funding should carry the company through to cash-flow breakeven, reducing the risk of further capital raisings in the future. 

The funds will also allow the company to accelerate sales, marketing, manufacturing and clinical activities.

Overall, investors are being asked to accept substantial near-term dilution in exchange for a stronger balance sheet, a potentially lower need for future fundraising, and an improved pathway to commercial success. 

The investment case now depends more heavily on whether EBR can execute its growth strategy and convert this into meaningful sales over the next few years.

What’s Bell Potter’s view?

Following the announcement, the team at Bell Potter also weighed in on the outlook for this ASX small-cap. 

The broker appears to be cautiously positive on the business, but disappointed by the terms of the capital raise.

The A$150m raise is larger than expected. This is not necessarily a negative because it gives EBR more funding to execute its commercialisation strategy.

However, the dilution is materially worse than they anticipated. 

They specifically highlighted that the share count will increase by about 87.6% and that the issue price of 38 cents is far below their assumed 63 cents. This reflects how much the share price had weakened before the raise.

Despite this, the broker has retained its buy recommendation and $2.00 price target. 

This indicates an upside potential of more than 325%. 

We view the raising as a significant de-risking event, enabling EBR to commercialise WiSE and reach breakeven by FY29. 

This raising should serve as a cathartic event and clear the overhang from the share price. Post shareholder approval of tranche 2, we think the share price will be well supported by the market.

The post ASX small-cap with 300%+ potential upside announces capital raise appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Reserve Bank of Australia’s decisions surrounding the cash rate have been a hot topic for investors in 2026. The official cash rate has been raised three consecutive times this year. 

The official cash rate sits at 4.35%, its equal highest mark since 2011. 

With the RBA set to meet in less than two weeks, investors will be anxiously anticipating the next move. 

A new Global X report has identified that rising interest rates and changing tax settings are creating a new landscape. For income-focused investors, that could present a big opportunity.

After years of relying on banking stocks driving the market higher, investors are now facing a market where capital gains may become harder to achieve, volatility is rising, and traditional income sources are under pressure. At the same time, higher interest rates are increasing the income available from a range of investments.

Particularly strategies designed to generate enhanced income.

Income investing is back 

The 2026 Federal Budget introduced proposed changes to capital gains tax rules that may reduce some of the advantages of relying heavily on portfolio growth.

Meanwhile, higher interest rates have increased yields across several asset classes, including bonds, bank debt and enhanced income strategies. 

Market volatility has also risen, which can increase the income generated by option-based strategies.

According to Global X. for retirees and investors seeking more dependable portfolio income, this environment may offer opportunities that were difficult to find during the ultra-low-rate years.

A different approach

According to the report, traditional income investing in Australia has often centred around bank shares and fully franked dividends. But today’s market may require a more diversified approach.

Some investors are now blending multiple income sources, including:

• High-dividend Australian shares
• Bank bonds and credit investments
• Enhanced income ETFs such as the Global X Covered Call suite
• Defensive income-producing assets

The goal is not simply to chase the highest yield. It is about building more resilient income streams that can help investors navigate market uncertainty while remaining invested.

As interest rates stay elevated and market conditions become more challenging, income-focused investing may once again become a central theme for Australian portfolios.

How to benefit with ASX ETFs

Due to these economic conditions, Global X has identified several ASX ETFs that could be set to benefit from the current high interest rate environment. 

The first option to consider according to Global X is the Global X Australian Bank ETF (ASX: BANK). 

It invests in a diversified portfolio of Australian banking debt across the full capital structure, comprising fixed and floating-rate bonds, senior and subordinated debt, and hybrid securities.

Another option to consider is the Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU). 

It targets 50 high-dividend stocks from the S&P/ASX 200 Index.

The post How income investors can benefit from interest rate hikes: Expert appeared first on The Motley Fool Australia.

More reading

• How much could investors profit off these undervalued ASX 200 shares with a $10,000 investment?
• Why Telstra and these defensive ASX dividend shares could be top buys
• Can these ASX shares hitting 52-week highs keep rising?
• If I invest $5,000 in BHP shares, how much passive income will I receive in 2026 and 2027?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Electro Optic Systems Holdings Ltd (ASX: EOS) shareholders have an unusual opportunity sitting in front of them.

But it is only available to certain investors, and the deadline is coming up fast.

At the time of writing, the EOS share price is down 7.40% to $11.02.

Even after the fall, the ASX defence stock is still trading well above the $8 price attached to its current share purchase plan (SPP).

That means eligible shareholders could buy new EOS shares at a major discount to the current market price.

Based on the current share price, the gap between $8 and $11.02 is about 38%.

Of course, that gap could change quickly if the share price moves before the new shares begin trading.

So, what’s going on here?

A discounted offer for existing shareholders

EOS opened its SPP on 25 May.

Under the plan, eligible shareholders can apply for up to $30,000 worth of new shares at $8 each.

The offer is only available to shareholders who were on the register at 7pm AEST on Friday, 15 May 2026.

The offer is due to close at 5pm AEST on Tuesday, 9 June 2026.

EOS expects to announce the results of the SPP on Friday, 12 June, with new shares due to be issued on Tuesday, 16 June.

Those shares are expected to begin trading on Wednesday, 17 June.

Why the discount looks so large

The $8 offer price was set as part of a much larger capital raising.

EOS recently completed a $150 million institutional placement at the same price.

It also announced a $40 million strategic placement to Generation 5 Holding L.L.C, a related entity of Abu Dhabi-based defence group Calidus L.L.C, alongside another defence-focused institutional investor.

EOS said the institutional placement price represented a 9.3% discount to the last traded price before the raising was announced.

But the share price has moved strongly since then. EOS shares touched an all-time high of $12.58 on Tuesday, before some investors took profit.

That has left the SPP price sitting well below where EOS shares are currently trading.

The company said proceeds from the capital raising will help fund the upfront consideration for the MARSS acquisition.

Management said it will also use the funds to strengthen the balance sheet, alongside its secured term loan facility from Washington H. Soul Pattinson and Company Ltd (ASX: SOL).

EOS completed the MARSS acquisition on 21 May.

MARSS is a Europe-based provider of AI-enabled command-and-control systems for counter-drone capability.

The return is not guaranteed

Keep in mind, this isn’t a guaranteed 38% return.

The share price could fall before the new shares begin trading.

EOS also has the right to scale back applications if demand for the SPP is higher than expected.

The company is targeting up to $25 million through the SPP, though it can accept more or scale back applications at its discretion.

That means eligible investors may not receive the full number of shares they apply for.

There is also the wider question of valuation.

EOS shares have already had a huge run over the past year, helped by rising interest in remote weapon systems (RWS) and high-energy laser weapons (HELW).

The discounted SPP may look attractive on paper, but investors still need to weigh that against the risks of buying after such a strong rally.

The post If you own this ASX 200 stock, here’s how to make a quick 38% return next week appeared first on The Motley Fool Australia.

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• Iran war impact on ASX defence shares and ETFs
• The SpaceX IPO is coming. Here’s how ASX investors can benefit from the excitement
• These ASX stocks have hit the ground running in June – can they keep rising?
• 3 top ASX shares at 52-week highs I’d still buy
• Why are Electro Optic Systems shares up more than 10% today?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Russia’s invasion of Ukraine in 2022 kickstarted the global defence spending investment megatrend.

The staunch US ‘America First’ policy under US President, Donald Trump, exacerbated it.

NATO’s massive commitment last year to more than double its defence spending from 2% of GDP to 5% within 10 years reflected it.

And today, the Iran war has brought defence capabilities into even sharper focus, says CommSec analyst, James Gruber.

Defence spending continues to rise

In an article, Gruber says global defence spending has increased by almost 30% over three years – the fastest rise since the 1980s.

This has directly impacted the earnings of ASX defence companies, whose share prices have soared since 2022.

In 2024, the global defence spending trend was strong enough to warrant the launch of three exchange-traded funds (ETFs) on the ASX.

Then came the Iran war, which further highlighted the need for domestic defence capacity, not to mention energy security, for all nations.

ASX defence shares and ETFs had a particularly strong run in 2024 and 2025.

They have cooled in 2026, alongside the rest of the market, despite the Iran war keeping the defence theme front of mind for investors.

Bearing in mind that many factors can influence a company’s stock value, let’s take a look at the share price movements of four ASX defence shares and three thematic ASX ETFs since 2022, and also since the Iran war began on 28 February, to get an idea of the impact.

Austal Ltd (ASX: ASB)

Austal is an Australian defence shipbuilder and services provider that builds ships for the Australian Navy, US Navy, and other clients.

The Austal share price has doubled over the past four years. The ASX defence share hit a record $8.82 in January.

The Iran war began on 28 February. Since then, Austal stock has dropped 22% to $4.01 per share.

Droneshield Ltd (ASX: DRO)

Droneshield is a counter-drone technology company that makes drone defence systems.

Gruber says DroneShield has a niche, offering a range of equipment for detection and neutralisation, and aims to be a one-stop shop.

The Droneshield share price has soared 1,133% over the past four years. The ASX defence share hit a record $6.71 in October.

Since the Iran war began, Droneshield shares have fallen 18% to $2.96 per share.

Titomic Ltd (ASX: TTT)

Titomic manufactures lightweight titanium parts and provides industrial-scale metal additive solutions.

These solutions include its patented Titomic Kinetic Fusion cold spray technology for fast repairs of military equipment.

The Titomic share price has leapt 145% since 2022. The ASX defence share hit a 52-week high of 36 cents in October.

Since the Iran war began, Titomic shares have lifted 17% to 25 cents apiece today.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic specialises in advanced weapon systems, counter-drone solutions, and space domain awareness.

The Electro Optic Systems share price has ripped 468% since 2022. The ASX defence share hit a record $12.58 in March.

Since the Iran war began, Electro Optic Systems shares have risen 20% to $10.80 today.

What about ASX defence ETFs?

The following three ASX ETFs were launched in 2024. Let’s take a look at their performance.

Vaneck Global Defence ETF (ASX: DFND)

DFND ETF holds just 36 shares and tracks the MarketVector Global Defence Industry (AUD) Index before fees.

DFND ETF is 75% higher since inception in September 2024. The ASX defence ETF hit a record $45.47 per unit in January.

Since the Iran war began, DFND ETF units have drifted 11% lower to $35.25 today.

Global X Defence Tech ETF (ASX: DTEC)

ASX DTEC invests in 37 shares and seeks to track the Global X Defense Tech Index before fees.

The DTEC ETF price has increased 59% since inception in October 2024. The ASX defence ETF hit a record $21.50 in January.

Since the Iran war began, DTEC ETF units have fallen 16% to $15.96.

Betashares Global Defence ETF (ASX: ARMR)

ASX ARMR invests in up to 60 companies headquartered in NATO nations or allied countries, such as Australia and Japan.

It seeks to mirror the returns of the VettaFi Global Defence Leaders Index before fees.

ARMR ETF units have ascended 55% since launching in October 2024. The ASX defence ETF hit a record $29.35 in January.

Since the Iran war began, ARMR ETF units have descended 11% to $23.50 today.

The post Iran war impact on ASX defence shares and ETFs appeared first on The Motley Fool Australia.

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• DroneShield shares slump 18% in a month: Has the ASX defence stock finally lost steam?
• Should I buy DroneShield shares after its US contract win?
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Motley Fool contributor Bronwyn Allen has positions in Betashares Global Defence ETF – Beta Global Defence ETF and Vaneck Global Defence Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Electro Optic Systems. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Ask most Australians how much superannuation they need to retire comfortably and you will get a shrug.

Ask the Association of Superannuation Funds of Australia and you will get a very specific answer.

According to ASFA’s February 2026 Retirement Standard, a comfortable retirement now costs $51,278 per year for a single person and $77,375 per year for a couple.

To fund that lifestyle from age 67, ASFA estimates homeowners need $630,000 in superannuation for singles and $730,000 for couples.

Those figures have just reached all-time highs, driven by inflation pushing up the cost of healthcare, energy, food, and services. And many Australians are nowhere near them.

The gap is bigger than most people realise

According to APRA’s most recent superannuation statistics, the average superannuation balance at retirement age is approximately $250,000 for men and $160,000 for women.

That is less than half of what ASFA says a single person needs for a comfortable retirement.

In better news, the shortfall is not a crisis for those who will receive the full Age Pension.

A modest retirement, defined by ASFA as a lifestyle slightly above the Age Pension, requires only $110,000 for singles and $120,000 for couples. This is because the pension does most of the heavy lifting.

But the difference between a modest and comfortable retirement is approximately $20,000 per year for singles.

That gap funds private health insurance, a car replacement, regular dining out, annual domestic travel, and an overseas trip every few years.

For most Australians, that gap is worth closing.

Why ASX shares inside super are one of the most powerful tools available

The good news is that superannuation, combined with smart investing inside it, is one of the best wealth-building tools available to Australians.

Earnings inside super are taxed at just 15% during the accumulation phase, compared to your marginal tax rate outside super.

In retirement, those earnings become completely tax-free.

The S&P/ASX 200 has returned approximately 8.5% per annum including dividends since inception. Inside a superannuation structure, this figure translates to an after-tax return that few alternative asset classes can match.

A 35-year-old with $100,000 in super today, earning 8.5% per annum and contributing 12% of a $100,000 salary, would accumulate approximately $1.8 million by age 67.

That is comfortably above the ASFA comfortable retirement benchmark. It also exposes the common misconception that superannuation alone cannot get most Australians to a dignified retirement.

Two ASX shares worth holding inside super

For investors building wealth inside super, quality fully franked dividend payers are particularly effective.

Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are two of the most widely held ASX shares in superannuation funds, and for good reason.

CBA is forecast to pay a fully franked dividend of approximately $5.15 per share in FY2026, held inside a super fund taxed at 15%. This dividend also generates a franking credit refund that effectively boosts the after-tax yield well above the headline figure.

BHP’s fully franked dividend, backed by iron ore and copper earnings, provides exposure to commodity price growth alongside a reliable income stream.

Both are businesses that reward the patient, long-term holding philosophy that superannuation, by its very nature, encourages.

The 30 June deadline is important

The concessional contributions cap for FY2026 sits at $30,000, including employer contributions.

Australians who have not yet reached that cap have until 30 June 2026 to make additional pre-tax contributions.

Every dollar contributed at the 15% concessional rate rather than at a marginal rate of 32.5% or higher is a permanent and compounding tax saving.

Foolish takeaway

The number that ASFA puts on a comfortable retirement might be higher than you expected.

But the combination of compulsory superannuation, the tax advantages of the super structure, and the long-term returns available from quality ASX shares makes that target achievable for most Australians who start paying attention early.

The post How much super do you actually need to retire in Australia? The answer might surprise you appeared first on The Motley Fool Australia.

More reading

• 2 ASX income shares I’d buy outside Westpac and the big four banks
• 7 ASX shares attracting upgraded ratings this week
• How these 3 headwinds could sink CBA shares in 2026
• Buy, hold, sell: Tabcorp, 4DMedical, BHP shares
• How low could CBA shares go?

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.